Franchise advice


multiple territories or locations. Often, the value proposition to you as


the potential franchisee is greater with a new brand because, as it grows and matures, the franchisor will feel able to ask for a greater level of initial investment from its subsequent franchisees. You almost certainly have unlimited


access to the founders and top management of the company giving you their personal input, which means that as they grow, and you grow, the relationship is likely to be a rather special one, because you are their foundational franchisee and a cornerstone of the franchise business. To summarise, established franchisors


offer a safe, reliable and verifiable purchase to you, the fledgling franchisee, and could be perceived as predictable. That may well suit your character. On the other hand, if you enjoy a little


sense of adventure and possibly a good financial deal – along with some added- value extras – then a newly established franchise is well worth your consideration. Every brand has to start somewhere, and the fact that a franchise is new to the market should not


WHICH WAY WILL YOU GO?


ESTABLISHED FRANCHISE – MAY MEAN: Ÿ A sense of security via reputation and relationships


Ÿ Trading history and track record Ÿ Belonging to a large network


NEWCOMER TO THE SCENE – MAY MEAN: Ÿ More access to franchisor and head office


Ÿ Lower entry fees Ÿ Influence on the business as it grows and develops


detract from its underlying merits. Finally, whether you are acquiring a


new franchise or an established one, it is always important to get third-party advice around the franchise legal agreement and the commercial aspects of the franchise,


which is why there are a number of bfa-affiliated lawyers and consultants offering such a service. After all, you wouldn’t buy a holiday without ensuring that, at the very least, you had some form of holiday insurance behind you from the outset, would you? Not unless you were exceptionally adventurous – and that’s possibly only for the very foolhardy! So, as the warm summer is


beckoning – we wish you both happy holidays and happy franchising. l


Nick Williams is managing consultant at Ashtons Franchising Consulting ashtonsfranchise.com


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